Post-Recovering Effort on Corporate Social Responsibility’s Policies Promote More Favourable Responses among Value- Aligned Customers following Service Failures

Abstract

The present research investigates the impact of two types of broad-based CSR policies implemented by proactive and passive approached designed to enhance customer perceived value of alignment and promote more favorable responses following service failures. The CSR’s policies benefit a broad range of beneficiaries-environmental conservation, health initiatives, human rights campaigns, and local community organizations. This research has designed two CSR’s domain policies; CSR with choice (CWC) targets the specific beneficiaries over the firm’s CSR and CSR no choice (CNC) targets a broader range. Post-recovery efforts were implemented using proactive and passive strategies to attenuate the effect of service failure and induce a more favorable outcome to customer perceived value of alignment (VA). The results indicate that CWC’s policy using proactive approach results in the more positive responses to customers perceived value of alignment than CNC’s policy. However, CNC’s policy implemented by passive approach reports a more favorable response toward perceived value of alignment than CWC’s policy in the wake of service failure.

Keywords: CSR, CSR no choice, CSR with choice, post-recovery effort, proactive strategy, passive strategy, perceived value alignment